Wednesday, July 30, 2014

Rick’s Pedigree Coins – Rare Binion Collection Silver Dollars Hit The Market


Several rare Morgan silver dollars from the Binion Collection have popped up on Ebay.  These seldom seen varieties will give some lucky Binion collectors a chance to acquire low population coins for their collections.

Being offered are:

1.)    1879-O/O, VAM-4, Top 100, NGC XF45.  There are only 7 Binion Morgan silver dollars of this variety available to the collector.  It is truly a very rare item and not found in many sets.

2.)    1882-O/S, VAM-5, Top 100, NGC XF45.  In the Binion Collection, there are 3 different O/S varieties available (VAM-3, VAM-4, VAM-5).  The VAM-5 has the lowest population of the 3 varieties with 70 coins.

3.)    1888, VAM-11, Top 100, NGC AU58.  Another rare variety in the Binion Collection with only 24 examples known to have been graded.

4.)    1921 NGC MS61.  Surprisingly, only 55 Morgan silver dollars with this date are in the Binion Collection. 

 
These coins are offered at a premium that reflects their low populations. 





 

Wednesday, July 16, 2014

Rick’s Pedigree Coins – Wizard Coin Supply - Rick’s Legacy “Pedigree & Hoard / Coins & Currency” and Fitzgerald Silver Dollar Collection – “The Purple Gang Set”


Rick’s Legacy – Pedigree & Hoard / Coins & Currency

 Fitzgerald Silver Dollar Collection – “The Purple Gang Set”

 
I am delighted to announce that both my books will be available from Wizard Coin Supply.  Wizard Coin Supply is a national coin supply company located in Virginia and provides extensive mail order service.   They also attend many of the coin shows in the eastern USA, so be sure and look for their booth if you attend one in your area. 

The initial shipment of my books are en route to Wizard and will soon be available for direct order on their website:

www.WizardCoinSupply.Com     

 
Wizard supplies a wide range of support products for the coin collector, so be sure to give their website a look for your coin collecting needs.


Sunday, July 13, 2014

Rick’s Pedigree Coins – 2014 Florida United Numismatists (FUN) ICG Pedigree


I have just received two “Pedigrees” that are very unique and special to me.   They are authenticated by ICG and beautifully presented in the ICG slab.  ICG has also authenticated/graded pedigrees from such special collections as the GSA Hoard and Golden Nugget Casino. 
 
The first Pedigree was presented to me as an “Award of Appreciation” for exhibiting the coins displayed in my book Rick’s Legacy – Pedigree & Hoard / Coins & Currency at the 2014 Summer FUN.  As you will see below, it is a 2014 Silver Eagle and is numbered 23 of 60 in recognition of the participation in exhibiting at the show.



 

The second Pedigree was also an “Award of Appreciation” presented to me for my lecture on Pedigree coins at the Summer FUN show on July 12 and is number 31 of 60.  


 
Being a Pedigree collector, these two “Award of Appreciation” gifts have vaulted to the top of my favorite Pedigree holdings.  So, move over Champagne Lanson, Palace Collection, Fitzgerald Collection and other wonderful Pedigrees.  There is a new Pedigree in the house and it now holds the honor of being my favorite Pedigree.

For all you Pedigree collectors out there, you too can receive your own special Pedigree like the one I received by exhibiting at the FUN show.  There are only a couple of pre-qualifications you must meet.  First, become a FUN member (modest membership fee).  Second, create an interesting and educational exhibit.  There are several ways to exhibit and/or compete and you can learn the different ways by visiting the FUN website at:
 

 
Click on the Exhibit tab and start the fun of FUN!

Sunday, July 6, 2014

Rick’s Pedigree Coins – Fitzgerald Silver Dollar Collection “The Purple Gang Set” now available on Ebay


My second book, Fitzgerald Silver Dollar Collection “The Purple Gang Set”, is now available on Ebay.  Photo’s of the book and a few pages can be found by searching for Ebay item:  151345977034




 



First book, “Rick’s Legacy – Pedigree & Hoard / Coins & Currency” is also still available on Ebay from the same seller.



Friday, July 4, 2014

Rick’s Pedigree Coins – Placing a Value on Pedigree Coins – Another View


One of the benefits of having a Pedigree Coin blog is that I have been able to share ideas with other collectors with similar interests.  In doing so, one collector who prefers to remain anonymous, shared his methodology for evaluating or minimizing Pedigree premiums that is very interesting.  He actually refined it during his purchase of a Saddle Ridge gold coin and found that it consistently held.

1.)    He classified the coins by date/mintmark.

2.)    He then classified them into MS grades.

3.)    He developed a base cost for those date/mintmark/grades (ignoring pedigree premiums).

4.)    He then calculated the premium being asked for each grouping.  (Subtracted the base price from the asking price.)

What he found was that as the base value of the coin increases because of MS grade, the premium value (spread) decreases.  I thought this was a very interesting discovery so I went back and looked at several of my recent sales/purchases in the Fitzgerald and Cortez collections and found this phenomenon to hold.
 
I thought this finding was interesting and wanted to share it with other Pedigree collectors for what it is worth.  It is not an absolute, but it is another way to look at Pedigree premiums.

Thursday, July 3, 2014

Rick’s Pedigree Coins – Placing a Value on Pedigree Coins – 1881-CC Fitzgerald


I am going to add in rarity to evaluating the value of a Pedigree coin with the 1881-CC Fitzgerald.  First I start by assembling all the facts for the formula:

1.)    Pedigree name  (Fitzgerald)

2.)    Date of coin (1881)

3.)    Mintmark  (CC)

4.)    Grade (MS62)

Now I apply my purchasing logic. 

1.)    How has a similar coin with no Pedigree performed in recent auctions – what is the average selling price?  You can use any auction site, but I use Heritage Auctions.  For my selection, I enter the date, mintmark and grade.  I eliminate any chart busters like coins with exceptional toning, having Pedigrees or Proof like, etc.  I am using comparable coin in auction to comparable Pedigree coin except the Pedigree is not relevant at this point. 

2.)    What is the premium value of the Pedigree worth to me?  To help me with this decision, I look at the population (census) report for the Pedigree.  The Binion, Fitzgerald, GSA, Battle Creek and several others have this information available.  While the population reports do change over time, they are directionally correct and assist in determining rarity.  The more rare the coin in the Pedigree, the more it is worth to me. 

First, for the fun of it, I check the NGC price list value and find it is $540.  Now I go to Heritage’s auctions and find the coin consistently sells for $470 in auction.  So $470 is my base purchase price.  (Another example of why you should not rely on price guides for purchasing decisions).

Now I need to determine the “Premium for the Pedigree” value.  I again reference the number one book on Fitzgerald coins on the market – Fitzgerald Silver Dollar Collection – “The Purple Gang Set” and review the basics pertaining to the coin and consult the population report.  Here I find that there is a population of 29, 1881-CC silver dollars in the Fitzgerald Collection.  I also see that the 1881-CC in the Fitzgerald Collection has one of the lowest populations in the CC mintmark.  With such a low population comes a higher Pedigree Premium.  So instead of being in the $25 to $50 range I use for a common population coin, I increase my premium value range to $75 to $150 for the rarity.  If I have the coin, I would place my offer in the $75 range and if I do not have it, and want it for my collection, I would go up to the $150 premium level.  

Using the formula developed, my calculation looks like:

Base Price of Coin + Premium for Pedigree = My Value

$470 + $75 to $150 = My purchase range is $545 to $620
 
If I see the coin at a coin show or in a coin store, I will offer $545 for this coin (since I already have it).  If I see it in auction, I will bid it up to $545.  In either case, if I buy/win it I will be happy because there are only 29 Fitzgerald 1881-CC’s and I believe it will be a good investment.

Wednesday, July 2, 2014

Rick’s Pedigree Coins – Placing a Value on Pedigree Coins – 1878-CC Fitzgerald

There are a number of ways to place a value on a coin and it is further complicated when the coin is a Pedigree.  I am not going to review all the ways that there are, but I am going to tell you how I do it – and it works for me.

First, most Pedigrees are graded by NGC or PCGS so my discussion will revolve around Pedigrees graded by those companies.  ICG does authenticate/grade some Pedigrees as well but I will discuss how I evaluate their Pedigrees in a later blog.

First we start with all the relevant facts:

1.)    Pedigree name
2.)    Date of coin
3.)    Mintmark
4.)    Grade

From here, I use the following formula:

1.)    How has a similar coin with no Pedigree performed in recent auctions – what is the average selling price?  You can use any auction site, but I use Heritage Auctions.  For my selection, I enter the date, mintmark and grade.  I eliminate any chart busters like coins with exceptional toning, having Pedigrees or Proof like, etc.  I am using comparable coin in auction to comparable Pedigree coin except the Pedigree is not relevant at this point. 

2.)    What is the premium value of the Pedigree worth to me?  To help me with this decision, I look at the population (census) report for the Pedigree.  The Binion, Fitzgerald, GSA, Battle Creek and several others have this information available.  While the population reports do change over time, they are directionally correct and assist in determining rarity.  The more rare the coin in the Pedigree, the more it is worth to me. 

I know several less experience collectors use price guides for determining value.  If you are using this method, you are way (to the wall max) overpaying.  I am going to pick a couple examples to illustrate my point.  First let’s take the 1878-CC Morgan silver dollar in MS64 condition.  The NGC price guide for the coin is $625 (I used the NGC price guide because it is a common source for many buyers).  In Heritage’s most recent auction 5 coins with the same date/grade/mintmark coin sold for an average of $510 per coin.  On Ebay, under the same guidelines, 6 coins with the same date/grade/mintmark sold for an average of $545 each.

The NGC price guide says $625 and the market says $510 to $545?  Yep.  So, if you are basing your purchasing decisions on price guide data, you are considerably overpaying for your coins.   And yes, this over-valuation of coins consistently holds for other date/mintmarks/grades.

But I am a little off track, so getting back to my formula of:

Base Price of Coin + Premium for Pedigree = My Value

For the 1878-CC, my base price is $510. 

So what is the “Premium for the Pedigree” value?  Here I move to the Fitzgerald Population Report found in the number one book on Fitzgerald coins on the market – Fitzgerald Silver Dollar Collection – “The Purple Gang Set” and I consult the page covering the 1878-CC silver dollar.  After getting the general background information found in the book, I refer to the population report and see that there were 166 Fitzgerald’s in this date/mintmark range.  I further look at the population for other CC’s in the Fitzgerald collection and see that the 1878 date is not all that rare of a coin.  Based upon this information, I feel comfortable with a $25 to $50 premium for the coin.  So my calculation looks like:

$510 + $25 or $50 = My range value is $535 to $560

So this is how I determine a value for Pedigrees that I am either buying or selling.  It seems to work for me.  I have more examples, but will save them for future blogs because they bring in other parameters like rarity of the coin in the Pedigree versus common in the general population.  

One last comment and I will sign off.  I am frequently asked, what is my Pedigree coin worth?  My reply is, “Start it in an auction for 99 cents and the last bid you get is what it is worth.”